You could attach your documentation on collection attempts and save that in the credit memo as well. You should list the information for the invoice being eliminated, since there is no number box currently in the QBO credit memo form. You don’t necessarily need to include descriptions on the credit memo, as those remain intact on the invoice. You want to record the identical product/service item(s) and identical amount(s) as shown on the invoice being eliminated. Complete the credit memo form with all the details from the invoice.Click on Credit Memo (in the Customers column).Use the date you determine the invoice to be uncollectible in the credit memo. Instead, leave the invoices in the accounts receivable register intact (and maintain a record of those customers to avoid in the future) and create and apply a Credit Memo to remove the invoice. Remove erroneous or older invoices you wish to “write off”ĭo not delete or void an older unpaid invoice to eliminate it. This article only discusses removing invoices for cash basis taxpayers. If you are a cash basis taxpayer, you haven’t ever recorded the income from unpaid invoices, so this isn’t an issue. that it is related to your small business andĪfter exhausting your options and documenting how your customer disagrees, went bankrupt or otherwise won’t pay, you proceed and remove that invoice.If you are an accrual basis taxpayer, the IRS is very strict about removing, or writing-off, unpaid invoices. Accrual basis taxpayers face strict rules relating to removing invoices Create a list of invoices that are either erroneous or need to be written off. Once you have a more accurate Open Invoices report, review the older, unpaid invoices and contact your customers who owe you. Finally, click Save and Close, so the payment is applied to the invoice and saved.Scroll to the Credits window, click on the payment.In the Invoices window, click on the invoice you need to apply the payment to.Use the date of the actual payment to keep the accounts receivable register intact.Record zero (0.00) as the payment amount.
Apply un-applied payments and record a zero-payment. If you see invoices listed as well as payments in a customer register, you probably have unapplied payments. The Open Invoices report also displays un-applied payments. The Open Invoices report displays all unpaid customer invoices, for all years through Today. To access this report, click on the Reports tab: Periodically review the report called Open Invoices in QuickBooks Online (QBO) See my preceding blog post “ Accounts Receivable Review in QuickBooks Desktop” for specific step-by-step guidance. If you are using QuickBooks Desktop, the process is similar, but the “how to” steps are different. Overview: This article discusses the process of reviewing accounts receivable lists in QuickBooks Online. As always, it’s important to remember that keeping an accurate list of what customers owe you is a critical part of running your business. In Part 2 of our QuickBooks Training series, we’ll describe the Accounts Receivable process for QuickBooks Online.
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